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Originally Posted by Kuan
I don't know about the rest, but he never really addressed the criticism that SS is a ponzi scheme. He just said that it was solvent.
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That means it's not a ponzi scheme. I'm not sure I follow your point. A ponzi scheme is insolvent from the beginning. That's how it's designed. No matter what happens, we know for sure that the ponzi scheme will not have sufficient funds to meet its future obligations. The same cannot be said about with social security.
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1) SS can be solvent until the year 4019 if you keep adjusting the benefit.
2) SS relies on the next two generations to fund current retirees until they die. If the we stopped having 2.5 babies per family SS would become insolvent pretty quick.
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Social security has been solvent for about 75 years, thanks to a few modest adjustments from time to time. With a few more modest adjustments it can go for another 75 years without missing a beat and with administrative costs that are a small fraction of the overhead incurred in private sector retirement vehicles. Pretty good deal if you ask me.